Jereme Sylvain : Yeah. And then to your question on operating margin and how our spend profile lays out, it’s certainly a great quarter and I think we’re really happy with it. At the end of the day, we raised our full year guidance to 19% on the Op margin perspective and that’s on the back of some of the work we’re doing around it. At Investor Day we talked about a cost to execute initiative and a lot of that was around driving profitability. So I think you can expect us to continue to look at driving operating margin over time. There will be ebbs and flows as we invest in the business for growth. And so, I think it’s reasonable to expect ebbs and flows, but I’ll kind of rewind back to where we started the year, right? When we are JPMorgan we issued guidance of around 16.5% operating margin and now we’re talking about exiting the year at 19%.
And that’s just all around the work of just being highly efficient around how we deliver service, how we deliver support, how we look to acquire customers. All of the things that we try to do. You can tell we are absolutely focused on making sure we do so in an efficient manner while continuing to reinvest in the business.
Joanne Wuensch: Thank you very much.
Operator: Our next question comes from Jeff Johnson with Baird. Please go ahead.
Jeff Johnson: Thank you. Good afternoon, guys. I will admit I missed most of the prepared comments. I jumped on right as Matt O’Brien was asking his question. But it was a G7 integration question for Matt and Jake from your answer, I just wanted to ask one follow-up question, I guess if I could. We’ve started to hear just in the last week or two that maybe there’s a, maybe newer version of G7 that has to come along to fully integrate with control IQ. Just if you’ve been clear, if I what I’m hearing in the field or help me understand what I’m hearing in the field and that that newer version of G7 is only going to be available for the first couple months here in the DME channel and eventually in pharmacy as of January 1. So what’s going on there? And is that anything at all from an investor perspective we need to think about worry about impact numbers at all? It doesn’t sound like to me, but just would love the insight there. Thanks.
Kevin Sayer : Yeah, thanks. Thanks for the question, Jeff. So, yeah, as we continually scale the G7 platform, we’ve actually made several enhancements to the product both on the software side. But also on the hardware side items. And so we actually recently made an update to the Bluetooth capability on the product, both increasing the frequency that it can reconnect to a device, as well as the performance of the Bluetooth radio itself. So that product is compatible with the tandem pump and is already shipping globally, both here in the US and internationally. And we don’t expect there to be any issue with people being able to upgrade their tandem pumps to the G7 compatibility.
Jereme Sylvain: Yeah. And Jeff, no, Marge and concerns. No question. This is really far for the course in what we do in terms of iterations over time. A lot of times you don’t necessarily hear about it. We went through this with the G6, you’ll remember it, We had a transmitter swap out which ultimately came through at a lower cost higher performance. I would expect more of these types of changes over time whether it’s software, and hardware as we continue to make improvements to the platform over time as part of just continuous improvement.
Jeff Johnson: The DME is only availability through the end of this year. Is that just to control kind of access initially or just anything I’m missing there?
Kevin Sayer : No, there’s nothing you’re missing there. There’s a product that’ll be out in all channels. And so really I think what you’re hearing is, is timing questions about when you burn through things. That’s, I think more anecdotal than anything else. Everybody’s going to be able to have access to this thing in short order. It might start through the DME, just because that’s the channel that you can generally start through. But this product will be available everywhere.
Jereme Sylvain: Well, and that also accommodates a lot of our tandem pumpers because they get a lot of their products. Supplies through the DME channel to you Jeff. So, this has been well thought out.
Jeff Johnson: Perfect. Thanks.
Operator: Our next question comes from Travis Steed with Bank of America. Please go ahead.
Travis Steed: Congrats everybody on the good quarter. Maybe just talk about the buyback, the thought process for the buyback. How much of that’s related to the convert versus to seeing or stock at a attractive valuation and is buyback something we should think about – going forward now that you’ve got your free cash flow at a good level?
Jereme Sylvain: Yeah, so we think about the buybacks in multiple different ways. Certainly, we want to limit dilution and that’s something we always think about as we launch converts. One of the other things we do, when we launch converts is obviously they come at a lower cash cost. And so when we have the opportunity to take the incremental cash that we’re making through those and give that back to shareholders, we certainly do so. And then, look, at the end of the day well it’s not for us to comment on share price. That’s certainly for others. We are highly, highly, highly bullish on our business over the long term. And so when we see an opportunity to invest in our business, either in the form of investment and capabilities, or by purchasing stock back, we certainly want to take those opportunities,.
Whether or not we, we do these all the time, look, it’s been two consecutive years we’ve done that. So it’s something we’ll certainly always look at. You can tell we’re not shy about it, but we’ll always take a look at it and make sure that we’re opportunistic around it, as well as you know, representing the bullishness we have in our business.
Travis Steed: Great. Thank you.
Operator: Our next question comes from Marie Thibault with BTIG. Please go ahead.
Marie Thibault: Hey. Great quarter. Thanks for taking the question. I hope you could just expand on the comment in the prepared remarks about a even more pronounced dynamic of complementarity between CGM use and the GLP-1s. Just curious to get more details on the magnitude of that and any thoughts on why that would be the more pronounced with the latest generation? Thanks.
Kevin Sayer: Well, this is Kevin. I’ll have Jeremy jump into because he’s more familiar with the underlying data than I am. But the underlying data as we research as much as we can indicates with the new compounds of the physicians are also prescribing CGM for the GLP-1 users as they add GLP-1 to diabetes therapies they’re already existing. They want to give these patients a scoreboard to let them know how they’re doing and they’re seeing very good results from the GLP-1s in combination with other therapies, they’re on. And then you add a sensor to it, you can see. Okay, I’ve taken this drug and look at my habits have changed. Look how my average glucose has changed over the course of a week or a month versus where it was before. And so we think we’re a vital tool in a very good tool and the underlying data that we’re seeing in prescriptions supports that. I don’t know Jereme if you have anything else to add.
